Definition of dove

The Federal Reserve has a joint mandate to maximise employment and maintain low inflation. Actually, there is a third part to the mandate - to limit interest rate volatility - but that aspect rarely comes into play.  Given that monetary policy is fundamentally about the management of aggregate demand, any Fed policy that pushes toward one goal, for example higher employment, will move them away from the other goal.

A dove is a FOMC (Federal Open Market Committee) member who puts more independent weight on the employment goal. This person would tend to be described as dovish. [1]

The meaning of the term dove is opposite to hawk.

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